Insurance is a reached agreement between a person/organization and a company, in which the company undertakes to provide guarantee of compensation to the person or organization for damage, illness, specified loss or death in return for a particular amount paid by the person or organization each month.
There are mainly four types of insurance policies:
Insurance is divided into four main parts:
- Life Insurance: This is a type of insurance which is done to provide financial assistance for the whole family when the policy owner is dead.
- Health Insurance: This is a type of insurance which provides financial support for any health issue faced by the policy holder or his family
- Property insurance: When your property is damaged by fire or any other disaster, this insurance will cover you by providing financial support where necessary.
- Auto Insurance: This type of insurance provides financial support for our damaged car.
There are several benefits of insurance for an organization or an individual, so before you purchase any insurance, you need to check how they will benefit you. See some benefits below:
- Whenever you face any loss, these insurance companies can help you solve your problem by providing financial support. They help you minimize your loss.
- You don’t need to pay for your losses. The insurance company will help cover your losses and support in any area that you need their support.
- They comply with the legal assessments. The meet up with your requirements and provide legal assistance where necessary. They also provide legal evidence for you to claim for the losses.
- Another advantage is that this insurance company gives every incentive to establish a loss control program. They have certain measures for promoting risk control activity.
- A rare advantage of this company is the support they provide for the policy holder’s credit. They provide loans to organizations and individuals by assuring that the lender will be paid the total compensation if the loan property is destroyed.
- Insurance companies help to reduce social burden of the victims by providing them with compensation.